Economic Survey pegs GDP growth at 6.75 to 7.5% in 2017-18

The Economic survey 2016-17 sets the foundation for FM Arun Jaitley’s union budget that will be presented on February 1, 2017 and states that market interest rates seen lower in FY17 due to demonetisation.TNN & Agencies | January 31, 2017, 14:34 IST

NEW DELHI: India's economy should grow between 6.75 percent and 7.5 percent in the financial year beginning on April 1, said the Economic Survey for 2016-17, tabled in the Parliament by finance minister Arun Jaitley on January 30, 2017.

The Economic Survey, which sets the scene for finance minister Arun Jaitley's

on Feburay 1, 2017, also said the implementation of wage hikes and muted tax receipts would put pressure on the fiscal deficit in 2017-18.

The survey was prepared by the finance ministry's chief economic adviser Arvind Subramanian.

The Survey's GDP growth figure for the current fiscal is lower than 7.1 per cent the Central Statistics Office had forecast earlier this month.

The Survey lists some of the challenges that might impede India's progress. These include ambivalence about property rights and the private sector, deficiencies in state capacity, especially in delivering essential services and inefficient redistribution.

Here are the highlights of the report:

Growth

1. 2017-18 GDP growth seen between 6.75 and 7.5 percent year on year

2. GDP growth rate at constant market prices for the current year 2016/17 is placed at 7.1 percent

Monetary policy

1. Sharp rise in prices in 2017/18 may cap monetary easing headroom

2. Arun Jaitley’s Finance bill that will be presented on February 1, 2017 and states that marker interest rates seen lower in FY17 due to demonetisation.Market interest rates seen lower in 2017/18 due to demonetisation

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